44831317 2025-04-02 2026-04-01 c:RevaluationReserveMember 44831317 2025-04-02 2026-04-01 c:RetainedEarningsMember 44831317 2025-04-02 2026-04-01 c:ReserveForNetRevaluationAccordingToEquityMethodMember 44831317 2025-04-02 2026-04-01 44831317 2025-04-02 2026-04-01 1 44831317 2025-04-02 2026-04-01 1 44831317 2025-04-02 2026-04-01 2 44831317 2025-04-02 2026-04-01 3 44831317 2025-04-02 2026-04-01 4 44831317 2025-04-02 2026-04-01 5 44831317 2025-04-02 2026-04-01 1 44831317 2023-04-02 2024-04-01 44831317 2022-04-02 2023-04-01 44831317 2021-04-02 2022-04-01 44831317 2025-04-02 2026-04-01 Hovedtal Resultat foer skat 44831317 2024-04-02 2025-04-01 Hovedtal Resultat foer skat 44831317 2023-04-02 2024-04-01 Hovedtal Resultat foer skat 44831317 2022-04-02 2023-04-01 Hovedtal Resultat foer skat 44831317 2021-04-02 2022-04-01 Hovedtal Resultat foer skat 44831317 2024-04-01 44831317 2023-04-01 44831317 2022-04-01 44831317 2024-04-02 2025-04-01 44831317 2026-04-01 44831317 2025-04-01 44831317 2025-04-02 c:ContributedCapitalMember 44831317 2025-04-02 c:RevaluationReserveMember 44831317 2025-04-02 c:ReserveForNetRevaluationAccordingToEquityMethodMember 44831317 2025-04-02 c:RetainedEarningsMember 44831317 2025-04-02 c:ProposedDividendRecognisedInEquityMember 44831317 2025-04-02 2026-04-01 c:ProposedDividendRecognisedInEquityMember 44831317 2026-04-01 c:ContributedCapitalMember 44831317 2026-04-01 c:RevaluationReserveMember 44831317 2026-04-01 c:ReserveForNetRevaluationAccordingToEquityMethodMember 44831317 2026-04-01 c:RetainedEarningsMember 44831317 2026-04-01 c:ProposedDividendRecognisedInEquityMember 44831317 2025-04-02 44831317 2024-04-02 44831317 2025-04-02 c:LandAndBuildingsMember 44831317 2025-04-02 c:PlantAndMachineryMember 44831317 2025-04-02 c:FixturesFittingsToolsAndEquipmentMember 44831317 2025-04-02 2026-04-01 c:LandAndBuildingsMember 44831317 2025-04-02 2026-04-01 c:PlantAndMachineryMember 44831317 2025-04-02 2026-04-01 c:FixturesFittingsToolsAndEquipmentMember 44831317 2026-04-01 c:LandAndBuildingsMember 44831317 2026-04-01 c:PlantAndMachineryMember 44831317 2026-04-01 c:FixturesFittingsToolsAndEquipmentMember 44831317 2025-04-02 c:InvestmentsInGroupEnterprisesMember 44831317 2025-04-02 c:InvestmentsInAssociatesMember 44831317 2026-04-01 c:InvestmentsInGroupEnterprisesMember 44831317 2026-04-01 c:InvestmentsInAssociatesMember 44831317 2025-04-02 2026-04-01 c:InvestmentsInGroupEnterprisesMember 44831317 2025-04-02 2026-04-01 c:InvestmentsInAssociatesMember iso4217:DKK xbrli:pure 0 0 0 BDO Statsautoriseret Revisionspartnerselskab Birk Centerpark 30 DK-7400 Herning 45719375 2026-09-30 Nicholas David George Coburn Årsrapport Danfloor A/S Østerbro 9 6933 Kibæk Den uafhængige revisors erklæring 44831317 1973-05-09 Herning 2025-04-02 2026-04-01 2024-04-02 2025-04-01 BDO Statsautoriseret Revisionspartnerselskab Birk Centerpark 30 7400 Herning HortenDahl Phillip Heymans Allé 7 2900 Hellerup Today the Board of Directors and Executive Board have discussed and approved the Annual Report of Danfloor A/S for the fi­nan­ci­al year 2 April 2025  - 1 April 2026. The Annual Report is presented in accor­dance with the Da­nish Fi­nan­ci­al State­ments Act. In our opinion the Fi­nan­ci­al Sta­te­ments give a true and fair view of the Company's assets, liabilities and financial position at 1 April 2026 and of the results of the Company's operations and cash flows for the fi­nan­ci­al year 2 April 2025  - 1 April 2026. The Management Commentary includes in our opinion a fair presentation of the matters dealt with in the Commentary. We recommend the Annual Report be approved at the Annual General Meeting. Kibæk 2026-09-30 Jan Magdal Poulsen Jan Magdal Poulsen Ian Charles Dexter Jeremy Edward Brice Wilson Nicholas David George Coburn Chairman John Andrew Wilson To the Shareholder of Danfloor A/S Konklusion We ha­ve au­di­ted the Fi­nan­ci­al Sta­te­ments of Danfloor A/S for the fi­nan­ci­al year 2 April 2025 - 1 April 2026, which comprise income statement, Balance Sheet, sta­te­ment of chan­ges in e­qui­ty, cash flows, no­tes and a summary of significant accounting policies. The Fi­nan­ci­al Sta­te­ments are pre­pared in accordance with the Da­nish Fi­nan­ci­al State­ments Act.   In our o­pi­ni­on, the Fi­nan­ci­al Sta­te­ments give a true and fair view of the financial position of the Com­pa­ny at 1 April 2026 and of the results of the Com­pa­ny's operations and cash flows for the fi­nan­ci­al year 2 April 2025 - 1 April 2026 in accordance with the Da­nish Fi­nan­ci­al State­ments Act.   Basis for OpinionGrundlag for konklusion We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the “Auditor’s Responsibilities for the Audit of the Fi­nan­ci­al Sta­te­ments” section of our report. We are independent of the Com­pa­ny in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), together with the ethical requirements that are relevant to our audit of the Financial Statements in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We be­lie­ve that the e­vi­den­ce we ha­ve ob­tai­ned is suf­fi­ci­ent and ap­prop­ria­te to pro­vi­de a ba­sis for our con­clu­si­on.   Grundlag for konklusion Ma­na­ge­ment's Re­spon­si­bi­li­ti­es for the Fi­nan­ci­al Sta­te­ments Management is responsible for the preparation of Fi­nan­ci­al Sta­te­ments that give a true and fair view in accordance with the Da­nish Fi­nan­ci­al State­ments Act and for such Internal control as Ma­na­ge­ment determines is necessary to enable the preparation of Fi­nan­ci­al Sta­te­ments that are free from material misstatement, whether due to fraud or error.   In preparing the Fi­nan­ci­al Sta­te­ments, Ma­na­ge­ment is responsible for assessing the Com­pa­ny's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the Fi­nan­ci­al Sta­te­ments unless Management either intends to liquidate the Com­pa­ny or to cease operations, or has no realistic alternative but to do so.   Our objectives are to obtain reasonable assurance about whether the Fi­nan­ci­al Sta­te­ments as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Fi­nan­ci­al Sta­te­ments.   As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:   Identify and assess the risks of material misstatement of the Fi­nan­ci­al Sta­te­ments, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.   Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Com­pa­ny's internal control.   Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Ma­na­ge­ment.   Conclude on the appropriateness of Ma­na­ge­ment’s use of the going concern basis of accounting in preparing the Fi­nan­ci­al Sta­te­ments and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Com­pa­ny's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Fi­nan­ci­al Sta­te­ments or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Com­pa­ny to cease to continue as a going concern.   Evaluate the overall presentation, structure and contents of the Fi­nan­ci­al Sta­te­ments, including the disclosures, and whether the Fi­nan­ci­al Sta­te­ments represent the underlying transactions and events in a manner that gives a true and fair view.   Plan and perform the audit of the Fi­nan­ci­al Sta­te­ments to obtain sufficient appropriate audit evidence regarding the consolidated financial information of the entities or business units as a basis for forming an opinion on the Fi­nan­ci­al Sta­te­ments. We are responsible for the direction, supervision and review of the audit work performed. We remain solely responsible for our audit opinion.   We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.   Statement on Management Commentary Management is responsible for Ma­na­ge­ment Com­men­ta­ry.   Our opinion on the Fi­nan­ci­al Sta­te­ments does not cover Ma­na­ge­ment Com­men­ta­ry, and we do not express any form of assurance conclusion thereon.   In connection with our audit of the Fi­nan­ci­al Sta­te­ments, our responsibility is to read Ma­na­ge­ment Com­men­ta­ry and, in doing so, consider whether Ma­na­ge­ment Com­men­ta­ry is materially inconsistent with the Fi­nan­ci­al Sta­te­ments or our knowledge obtained during the audit, or otherwise appears to be materially misstated.   Moreover, it is our responsibility to consider whether Ma­na­ge­ment Com­men­ta­ry provides the information required under the Danish Financial Statements Act.   Based on the work we have performed, we conclude that Ma­na­ge­ment Com­men­ta­ry is in accordance with the Fi­nan­ci­al Sta­te­ments and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement of Ma­na­ge­ment Com­men­ta­ry.   Herning 2026-09-30 BDO Statsautoriseret Revisionspartnerselskab 45719375 Jacob Frydkjær Juulsgaard Den uafhængige revisors erklæring State Authorised Public Accountant mne46610 33916000 30410000 34153000 8517000 3996000 6444000 521000 142000 -38000 15701000 20656000 19595000 15493000 15167000 Profit/loss for the year before tax Profit/loss for the year before tax Profit/loss for the year before tax Profit/loss for the year before tax Profit/loss for the year before tax 17614000 14579000 13749000 201707000 189166000 185145000 174674000 160658000 155933000 10745000 6143000 178000 -948000 0 0 7406000 143000 -3822000 7361000 1017000 1017000 1712000 1721000 4.0 6.6 8.7 6.8 4.7 88.7 88.3 86.6 84.9 84.2 8.6 10.6 10.5 9.2 9.1 The ratios stated in the list of key figures and ratios have been calculated as follows:   Invested capital: NWC + intangible and tangible assets (ex goodwill) – provisions – other operating liabilities, non-current Return on invested capital: Operating Profit/loss adjusted for goodwill amortisation x 100          Average invested capital Equity ratio:  Equity, at year-end x 100 Total assets, at year-end Return on equity: Profit/loss after tax x 100        Average equity Principal activities Danfloor's core activities remain centred on the design, manufacture, and distribution of broadloom carpets and carpet tiles, serving both residential and commercial contract markets — consistent with previous years. Our portfolio encompasses a range of standard collections alongside tailored, bespoke solutions, reaching customers through domestic sales channels, international export, and via our wholly owned subsidiary, Danfloor UK Ltd.   Development in activities and financial and economic position The financial year began on a challenging note, with the introduction of US-imposed tariffs creating uncertainty in the market from the outset. This had a direct impact on activity levels, and we fell behind budget in the early part of the year as a result. Trading conditions gradually improved through the second half of the year, and sales picked up to recover part of the shortfall from the first half.  By year-end, we had closed some of the gap, and the business finished the year in a satisfactory position. Despite the slow start, our gross margin held up well, supported by disciplined cost management and a favourable product mix. Healthcare and residential wool segments continued to perform solidly, while polypropylene residential carpets and carpet tiles faced ongoing market resistance — an area we continue to monitor closely. Our diversified product portfolio again demonstrated its value as a strategic asset, enabling us to serve multiple sectors and balance risk across the business. At the same time, we recognise that this breadth of offering brings communication challenges around market positioning and brand clarity — something we are actively working to address. Overall, while the year presented real headwinds in the first half, the Danfloor Group delivered a satisfactory operational result.    Profit/loss for the year compared to the expected development Profit after tax for the year ended 1 April 2026 amounted to DKK (’000) 14.751, representing a decrease of DKK (’000) 4.341 compared to the previous financial year. This development is slightly lower than our expectations.    Significant events after the end of the financial year The geopolitical landscape has shifted considerably, with the outbreak of conflict involving Iran now adding a further layer of instability to an already uncertain global environment. A significant consequence of this has been a sharp rise in oil prices, which has a direct and material impact on our cost base, given the oil-derived raw materials central to carpet manufacturing. Managing this cost pressure remains one of the primary operational challenges facing the business in the period ahead. This comes at a particularly difficult time, as the European carpet market continues to experience declining demand for textile flooring, alongside persistent overcapacity within the industry. The combination of rising input costs and a contracting market creates a challenging environment for maintaining margins, and we expect price competition across both retail and contract segments to remain intense. Against this backdrop, management is closely monitoring developments and is prepared to respond with the necessary adjustments to pricing, sourcing, and cost structure as conditions evolve. Preserving margin integrity while remaining competitive in a difficult market will be a key focus for the year ahead.   Future expectations The new financial year has opened in a challenging climate, with rising cost prices feeding through into uncertainty across several of our key market segments. In light of these conditions, management anticipates that the financial result for 2026/27 will be broadly in line with that achieved in 2025/26. Profit before tax is therefore expected to be in the range of DKK (‘000) 16.000 – 20.000 We remain committed to navigating the shifting market landscape through a continued focus on cost discipline and operational efficiency, with the aim of protecting and sustaining our long-term business position.   30199901 32361388 22113731 22418703 4037221 3395583 61892 0 3987057 6547102 11336347 13566527 391082 548832 13542 6094 15700944 20656367 949793 1564319 14751151 19092048 17874029 17438918 13861668 15144001 1592706 1539653 33328403 34122572 39093475 70270372 21376032 22066184 60469507 92336556 93797910 126459128 12002257 11978542 10921548 11959113 27086692 28813199 50010497 52750854 6338569 7316823 12712619 294165 697351 908345 16668 0 880483 911404 20645690 9430737 12492317 21092162 83148504 83273753 176946414 209732881 5000000 5000000 140144 155572 60354458 92221508 60778011 45521342 30722000 42350000 156994613 185248422 5304524 5347810 5304524 5347810 567640 1180294 567640 1180294 5724756 9035046 5162832 5226909 14079637 17956355 14647277 19136649 176946414 209732881 DKKSha­re ca­pi­talReserve for revaluationReserve for net revaluation according to equity value methodRetained earningsProposed dividendTotal Equity at 2 April 20255.000.000155.57292.221.50845.521.34142.350.000185.248.421 -30.722.000 Proposed profit allocation see note 5 11.336.347-27.307.19630.722.00014.751.151 Transactions with ownersDividend paid -42.350.000-42.350.000 Other legal bindingsForeign exchange adjustments -654.959 -654.959 TransfersReceiv./decl. dividend -42.548.43842.548.438 0Allowed equalization -15.42815.428 0 Equity at 1 April 20265.000.000140.14460.354.45860.778.01130.722.000156.994.613 5000000 155572 92221508 45521341 42350000 -30722000 11336347 -27307196 -42350000 -654959 -42548438 42548438 -15428 15428 5000000 140144 60354458 60778011 30722000 19092048 4037221 3395583 61892 -179175 690152 -69040 -12026499 -13497487 949793 1564319 -1622400 -2273930 2740357 -2592761 -11198285 6452170 -3876718 -1844886 -5493336 9943736 -3644944 -7361102 340000 431500 -3304944 -6929602 -42350000 -10000000 42548435 4459200 198435 -5540800 -8599845 -2526666 21092162 23618828 12492317 21092162 1 | Staff costs Ave­ra­ge num­ber of full ti­me em­ploy­ees3535 Wages and salaries 19.595.47619.398.017 Pensions 2.188.1752.693.926 Social security costs 330.080326.760 22.113.73122.418.703 Information on remuneration of Management is not disclosed, cf. the exemption provision in section 98b(3)(2) of the Danish Financial Statements Act.  35 35 19595476 19398017 2188175 2693926 330080 326760 22113731 22418703 2 | Income from investments in subsidiaries and associates Income from investments in subsidiaries 12.026.49913.497.487 Result of equity investments in associated enterprises -690.15269.040 11.336.34713.566.527 3 | Other financial income Other interest income 391.082548.832 391.082548.832 391082 548832 391082 548832 981640 1515294 11439 0 -43286 49025 5 | Proposed distribution of profit Proposed dividend for the year 30.722.00042.350.000 Allocation to reserve for net revaluation according to equity value method 11.336.34713.566.527 Retained earnings -27.307.196-36.824.479 14.751.15119.092.048 30722000 42350000 11336347 13566527 -27307196 -36824479 14751151 19092048 6 | Property, plant and equipment DKKLand and buildingsProduction plants and machineryOther plants, machinery, tools and equipment Cost at 2 April 2025 40.186.94065.524.0035.571.916 Additions 1.288.1801.447.884908.880 Disposals 00-495.823 Cost at 1 April 2026 41.475.12066.971.8875.984.973   Revaluation at 2 April 2025 989.00500 Transferred -789.55400 Revaluation of the year -19.78000 Revaluation at 1 April 2026 179.67100 Depreciation and impairment losses at 2 April 2025 23.737.02750.380.0024.032.263 Transferred -789.55400 Reversal of depreciation of assets disposed of 00-93.931 Depreciation for the year 833.2892.730.217453.935 Depreciation and impairment losses at 1 April 2026 23.780.76253.110.2194.392.267 Carrying amount at 1 April 202617.874.02913.861.6681.592.706 Value of recognised assets, excluding revaluation under § 41 (1) 17.694.358 40186940 65524003 5571916 1288180 1447884 908880 0 0 495823 41475120 66971887 5984973 989005 0 0 -789554 0 0 -19780 0 0 179671 0 0 23737027 50380002 4032263 -789554 0 0 0 0 93931 833289 2730217 453935 23780762 53110219 4392267 17874029 13861668 1592706 17694358 7 | Financial non-current assets DKKEquity investments in group enterprisesEquity investments in associated enterprises Cost at 2 April 2025 38.04877.000 Cost at 1 April 2026 38.04877.000   Revaluation at 2 April 2025 70.232.32421.989.184 Exchange adjustment -1.251.1270 Dividend -41.952.2690 Profit/loss for the year 12.035.573-690.152 Other adjustments -9.0740 Revaluation at 1 April 2026 39.055.42721.299.032 Carrying amount at 1 April 202639.093.47521.376.032 Investments in subsidiaries (DKK) Name and domicileEquityProfit/loss for the yearOwnership Danfloor UK Ltd., Bristol, UK 38.342.44712.035.573100 % Investments in associates (DKK) Name and domicileEquityProfit for  the yearOwnership Foamtex ApS, Ikast 64.128.098-2.070.45533 % 38048 77000 38048 77000 70232324 21989184 -1251127 0 -41952269 0 12035573 -690152 -9074 0 39055427 21299032 39093475 21376032 8 | Prepayments and accrued income Costs 880.483911.404 880.483911.404 9 | Sha­re ca­pi­talAllocation of Share capital: A-shares, 5.000/0 unit in the denomination of 1.000,00/0,00 DKK5.000.0005.000.000 5.000.0005.000.000 10 | Provision for deferred tax Provision for deferred tax comprises deferred tax on tangible fixed assets and prepayments and accrued income. Deferred tax is related to Tangible Fixed assets 5.110.8185.147.301 Prepayments and accrued income 193.706200.509 5.304.5245.347.810 Deferred tax, beginning of year 5.347.8105.298.785 Deferred tax of the year, income statement -43.28649.025 Provision for deferred tax 1 April5.304.5245.347.810 11 | Long-term liabilities 1/4 2026RepaymentDebt outstanding1/4 2025DKKtotal liabilitiesnext yearafter 5 yearstotal liabilities Corporation tax 567.640001.180.294 567.640001.180.294 0 12 | Related parties The Company did not carry out any material transactions that were not concluded on market conditions. According to section 98c, subsection 6 of the Danish Financial Statements Act information is given only on transactions that were not performed on common market conditions. 13 | Consolidated Financial Statements The company is included in the consolidated financial statements of Ulster Carpet Mills (Holdings) Limited, Portadown, Northern Ireland.   The Annual Report of Danfloor A/S for 2025/26 has been presented in accor­dance with the pro­vi­sions of the Da­nish me­di­um-si­ze Fi­nan­ci­al State­ments Act for en­ter­pri­ses in re­por­ting class C.  Regnskabsklasse C, mellemstor virksomhed-falseThe Annual Report is prepared consistently with the accounting principles applied last year.   Regnskabsklasse C, mellemstor virksomhed false Consolidated financial statements have not been prepared because the group fulfils the exemption provisions of section 112 of the Danish Financial Statements Act on sub-groups. The company is included in the consolidated financial statements of Ulster Carpet Mills (Holdings) Limited, Portadown, Northern Ireland. Net revenue Net revenue from sale of merchandise and finished goods is recognised in the income statement if supply and risk transfer to purchaser has taken place before the end of the year and if the income can be measured reliably and is expected to be received. Net revenue is recognised exclusive of VAT, duties and less discounts related to the sale.   Where products with a high degree of individual adjustments are delivered, recognition in net revenue is made as and when the production progresses, the net revenue being equal to the sales value of the work performed for the year (the production method). This method is applied when the total costs and expenses regarding the contract and the degree of completion at the balance sheet date can be reliably assessed, and it is likely that the financial benefits will flow to the company.    Net revenue is recognised exclusive of VAT and less duties and discounts related to the sale.   Costs of raw materials and consumables Raw materials and consumables comprises the costs of raw materials and consumables used to reach the revenue for the year. Additionally, decrease or increase of inventories of raw materials and consumables for the year is included, as well as normal impairment of inventories of raw materials and consumables.   Other operating income Other operating income includes items of a secondary nature in relation to the Group’s and the Company’s activities, including profit from sale of intangible and tangible fixed assets. In addition, profit from sale of intangible and tangible fixed assets as well as business interruption and conflict compensations are included. Compensations are recognised when the income is deemed to be realisable.   Other external expenses Other external expenses include cost of sales, advertising, administration, buildings, bad debts, operational lease expenses, etc.    Staff costs Staff costs comprise wages and salaries, including holiday pay and pensions and other costs for social security etc. for the company’s employees. Repayments from public authorities are deducted from staff costs.   Other operating expenses Other operating expenses include items of a secondary nature in relation to the enterprises' principal activities, including loss from sale of intangible and tangible fixed assets.   Income from investments in subsidiaries and associates The income statement of the parent company recognises the proportional share of the results of each subsidiary after full elimination of intercompany profits/losses and deduction of amortisation of goodwill.   In connection with transfers, potential profits are recognised when the economic rights related to the sold equity interests are transferred, however, at the earliest when the profit has been realised or is regarded as realisable. Moreover, realised losses other than impairments are included where identified.   Financial income and expenses Financial income and expenses include interest income and expenses, financial expenses of finance leases, realised and unrealised gains and losses arising from investments in financial assets, debt and transactions in foreign curren­cies, amortisation of financial assets and liabi­lities as well as charges and allowances under the tax-on-account scheme etc. Financial income and expenses are recognised in the income statement by the amounts that relate to the financial year.   Tax The tax for the year, which consists of the current tax for the year and changes in deferred tax, is recognised in the income statement by the portion that may be attributed to the profit for the year, and is recognised directly in the equity by the portion that may be attributed to entries directly to the equity.   Property, plant and equipment Land and buildings, production plant and machinery, other plants, fixtures and equipment are measured at cost less accumulated depreciation and impairment losses. Land is not depreciated.   The depreciation base is cost less estimated residual value after end of useful life.   The cost includes the acquisition price and costs incurred directly in connection with the acqui­sition until the time when the asset is ready to be used.   Straight-line depreciation is provided on the basis of an assessment of the expected useful lives of the assets and their residual value:   Useful lifeBuildings 50 years0 %Production plant and machinery 2-15 years0 %Other plant, fixtures and equipment 2-5 years0 % Profit or loss on sale of property, plant and equipment is stated as the difference between the sales price less selling costs and the carrying amount at the date of sale. Profit or loss is recognised in the Income Statement as other operating income or other operating expenses.   Financial non-current assets Investments in  are measured in the company's balan­ce sheet under the equity method.   Investments in  are measured in the balance sheet at the proportional share of the enterprises’ carrying equity value, calculated in accordance with the parent company’s accounting policies with deduction or addition of unrealised intercompany profits or losses and with addition or deduction of the residual value of positive or negative goodwill   In relation to material assets and liabilities recognised in group enterprise but are not represented in the parent, the following accounting policies have been applied.   Land and buildings, plants and machines, as well as other fixtures, fittings, tools and equipment are measured at cost with deduction of accumulated depreciations. Land is not depreciated. Investment properties are measured at fair value corresponding to the open market value of the property, where changes to the fair value are recognised in the Income Statement. Inventories are measured at cost according to the FIFO principle with deductions of any depreciations at a lower net realisation value. Receivables and payables are measured at amortised cost.   Received dividend is deducted in the carrying amount of the equity investment.   Net revaluation of investments in subsidiaries and associates is transferred under the equity to reserve for net revaluation under the equity value method to the extent that the carrying amount exceeds the acquisition value.   Profit and loss at disposal of investments in sub­si­dia­ri­es and as­so­cia­tes are determined as the difference between the net selling price and the carrying amount of the disposed investment at the time of sale, including non-depreciated excess values and goodwill. Profit and loss are recognised in the Income Statement under income from investments.   Sub­si­dia­ri­es and as­so­cia­tes with a negative carrying equity value are measured to DKK 0 and any amounts due from these enter­prises are written down by the company's share of the negative equity to the extent that it is deemed to be irrecoverable. If the carrying negative equity value exceeds receiv­ables, the residual amount is recognised under provision for liabilities to the extent that the company's has a legal or actual liability to cover the  sub­si­dia­ri­es and as­so­cia­tes deficit.   Impairment of fixed assets The carrying amount of pro­per­ty, plant and equip­ment are valued on an annual basis for indications of impairment other than that reflected by amortisation and depreciation.    In the event of impairment indications, an impairment test is made for each asset or group of assets, respectively. If the net realisable value is lower than the carrying amount, the assets are written down to the lower value.   The recoverable amount is calculated at the higher of net selling price and capital value. The capital value is determined as the fair value of the expected net cash flows from the use of the asset or group of assets and the expected net cash flows from sale of the asset or group of assets after the end of its useful life.    Inventories Inventories are measured at cost using the FIFO-principle. If the net realisable value is lower than cost, the inventories are written down to the lower value.   The cost of merchandise as well as raw materials and consumables is calculated at acquisition price with addition of transportation and similar costs.   The cost of finished goods and work in progress includes cost of raw materials, consumables, direct payroll cost and indirect production cost. Indirect production costs include indirect mate­rials and payroll and maintenance and depreci­ation of the machines, factory buildings and equipment used in the production process, cost of factory administration and management and capitalised development costs relating to the products.   The net realisable value of inventories is stated at sales price less completion costs and costs incurred to execute the sale and is determined with due regard to marketability, obsolescence and development in expected sales price.   Receivables Receivables are measured at amortised cost which usually corresponds to nominal value. The value is reduced by impairment losses to meet expected losses.   Write-off is performed to provide for losses when an objective indication has been assessed to have incurred that a receivable or a portfolio of receivables are impaired. If there is an objective indication that an individual receivable is impaired, the write-off is performed at individual level.   Receivables for which there are no objective indication of impairment at individual level are assessed at portfolio level for objective indication of impairment. The portfolios are primarily based on the debtors’ registered office and credit rating in accordance with the Company’s policy for credit risk management. The objective indicators, which are applied for portfolios, are determined based on the historical loss experiences.   Write-off is determined as the difference between the carrying amount of receivables and the present value of the expected cash flows, including realisable value of any received collaterals. The effective interest rate is used as discount rate for the single receivable or portfolio.   Accruals, assets Accruals recognised as assets include costs incur­red relating to the subsequent financial year.   Tax payable and deferred tax Current tax liabilities and receivable current tax are recognised in the balance sheet as the calculated tax on the taxable income for the year, ad­justed for tax on the taxable income for previous years and taxes paid on account.   Deferred tax is measured on the temporary dif­ferences between the carrying amount and the tax value of assets and liabilities.   Deferred tax assets, including the tax value of tax loss carry-forwards, are measured at the ex­pected realisable value of the asset, either by set-off against tax on future earnings or by set-off against deferred tax liabilities within the same legal tax entity.   Deferred tax is measured on the basis of the tax rules and tax rates that under the legislation in force on the balance sheet date will be ap­pli­cable when the deferred tax is expected to crystallise as current tax. Any changes in the deferred tax resulting from changes in tax rates, are recognised in the income statement, except from items recognised directly in equity.   Liabilities Financial liabilities are recognised at the time of borrowing by the amount of proceeds received less borrowing costs. In subsequent periods, the financial liabilities are measured at amortised cost equal to the capitalised value when using the effective interest, the difference between the proceeds and the nominal value being recog­nised in the income statement over the term of loan.   Amortised cost of current liabilities usually corresponds to nominal value.   Foreign currency translation Transactions in foreign currencies are translated at the rate of exchange on the transaction date. Exchange differences arising between the rate on the transaction date and the rate on the payment date are recognised in the income statement as a financial income or expense. Receivables, payables and other monetary items in foreign currencies that are not settled on the balance sheet date are translated at the exchange rate on the balance sheet date. The difference between the exchange rate on the balance sheet date and the exchange rate at the time of occurrence of the receivables or payables is recognised in the income statement as financial income or expenses. Fixed assets acquired in foreign currencies are translated at the rate of exchange on the transaction date.   The income statements of foreign subsidiaries and associates fulfilling the criteria for being independent entities are translated at an average exchange rate for the month and balance sheet items are translated at the rate of exchange on the balance sheet date. Exchange differences arising from translation of the equity of foreign subsidiaries at the beginning of the year to the rates of the balance sheet date and from translation of income statements from average rate to the rates of the balance sheet date are recognised directly in the equity.   Exchange adjustment of intercompany accounts with foreign subsidiaries that are deemed to be an addition to or deduction from the equity of independent subsidiaries are recognised directly in the equity.   Exchange rate differences recognised in Equity are accumulated in a fair value reserve for currency translation of foreign entities and are transferred to the Income Statement when object of the currency translation is realised or ends. An exception is exchange rate differences arising from translation of Equity interests, which are recognised at Equity value, where the whole value adjustment, including exchange rate differences, are included in the reserve for net valuation according to the Equity value method.   Cash Flow Statement   The cash flow statement shows the company’s cash flows for the year for operating activities, investing activities and financing activities in the year, the change in cash and cash equivalents of the year and cash and cash equivalents at beginning and end of the year.   Cash flows from operating activities:Cash flows from operating activities are computed as the results for the year adjusted for non-cash operating items, changes in net working capital and corporation tax paid.   Cash flows from investing activities:Cash flows from investing activities include payments in connection with purchase and sale of intangible and tangible fixed asset and fixed asset investments.   Cash flows from financing activities:Cash flows from financing activities include changes in the size or composition of share capital and related costs, and borrowings and repayment of interest-bearing debt and payment of dividend to shareholders.   Cash and cash equivalents:Cash and cash equivalents include bank overdraft and cash in hand.